Can the date of availability regarding rental property be before an occupancy permit/inspection is obtained?

[charjean47]

I want to use 05/07/15 for the date our rental was available for rent.  The occupancy permit/inspection was not done until 08/01/15.

 May I use 05/07/15 as the date available for rent or do I have to use 08/01/15 as the date rental was available?

Thank you.

[Lisa995]

If it wasn't available to rent until you had those permits, then you need to use the date it became available for rent.

[charjean47]

Lisa995 It was available before the permits so can I use a date prior to the permits?

[charjean47]

The rental was ready to rent on 05/07/15 and we advertised but we did not find a tenant until 08/01/2015.  It was on that date that and occupancy permit/inspection was done.

[Lisa995]

You use the date that the unit was available for rent...even if you didn't get tenants in there for a couple months.

[charjean47]

I understand this. I just want to know if I can use a date before we got the occupancy permit/inspection.  The house was ready and we advertised in May but we did not get the inspection or occupancy permit until we agreed on a tenant which was almost 3 months later.

[view2]

Federal tax laws generally respects state and city local laws.

To be placed in service, a unit is not required to be leased or occupied. Rather, receipt of a certificate of occupancy or other release issued by the local jurisdiction is generally accepted as the placed-in-service date. 

A1. Notice 88-116, 1988-2 C.B. 449, provides guidance on when a building will be considered to be placed in service for purposes of § 42. It provides that the placed-inservice date for a new or existing building used as residential rental property is the date on which the building is ready and available for its specifically assigned function, i.e., the date on which the first unit in the building is certified as being suitable for occupancy in accordance with state or local law.

Temporary  certificate of occupancy are general given for a residential rental property that are not occupied , however they are placed in service and have passed all state and local laws and permits for use in the activity build.

Capitalize all your carry cost .